Some `More Equal` Under Budget Bill

October 13, 1985|United Press International

WASHINGTON — Proponents of the balanced budget measure passed by the Senate insist it will force cuts ``across-the-board`` in federal programs. But on closer observation, about half of the federal budget is exempt.

Apparently operating under the Orwellian dictum that: ``Some are more equal than others,`` various federal programs are, in fact, treated very differently under the balanced budget act, sponsored by Sens. Phil Gramm, R- Texas and Warren Rudman, R-N.H.

The Gramm-Rudman measure, approved 75-24 by the Senate, sets gradually decreasing deficit limits for each of the next six years. Should those deficits be exceeded by more than 5 percent, automatic spending cuts would be required. It is the formula for making those cuts that shows signs of inequality.

Right off the bat, Social Security -- which makes up 28 percent of the budget - is exempt. There is no way of cutting payments of interest on the debt, so automatically another 15 percent or so of the government`s $1 trillion budget is off limits.

The other 7 percent or so of the exempt programs include Medicaid and welfare, because ``there`s no way to get to them`` under the act, according to Sen. Pete Domenici, R-N.M., and certain programs providing direct federal income support to families, like the refundable portion of the Earned Income Credit for the very poor.

Domenici, chairman of the Senate Budget Committee, estimated that about 50 percent of the federal budget is out of bounds under Gramm-Rudman.

Gramm told reporters repeatedly last week that his act would ``impose binding constraints that we`re going to reduce spending across the board.``

The programs subject to the cuts are divided into two categories - ones with automatic increases, such as cost-of-living increase, and all other federal programs. Half the reductions would come from each category.

The COLA category includes federal civilian and military pensions, veterans pensions, railroad retirement, supplemental security income, food stamps and child nutrition. The payments to doctors and hospitals under Medicare also come under this heading.

The second category includes all other programs, from farm programs to student loans.